Trading for beginners is intimidating, given the use of trading charts, patterns, indicators, and other complex tools. The dynamics of the stock market keep changing. Even a single day can record opposite reactions. For example, on January 21, 2025, amidst the volatile Indian stock market environment, Nifty 50 started the day in green at 23,400 but failed to retain its position as US President Trump announced its plans to impose trade tariffs on other countries. This led to more negativity in the Indian stock market, and Nifty 50 closed at 23,024. 

Beginner traders in the stock market may evaluate simple and meaningful strategies to build their understanding. Additionally, tracking top gainers and losers of the stock market may help traders make better trading decisions.

What are top gainers and top losers?

Top gainers are the stocks that have demonstrated the highest percentage increase in their price during a trading session. Top losers, on the other hand, are the stocks that have fallen the most in terms of percentage, during a trading session. 

For example,

• Amongst the top two performing stocks, if stock X rises from ₹100 to ₹120 in one trading session, Stock Y rises from ₹200 to ₹220, Stock X has the higher gain in percentage terms (20%) as compared to Stock B’s 10%, even though the value rise is the same. This makes Stock X the top gainer. 

• Amongst the bottom two performing stocks, if stock A falls from ₹120 to ₹100 in one trading session, Stock B falls from ₹220 to ₹200, Stock A has the higher loss in percentage terms (16.66%) as compared to Stock B’s 9%, even though the value fall is the same. This makes Stock A the top loser. 

Why track top gainers and losers?

Tracking top gainers and losers helps investors grasp market sentiment. The importance of tracking top gainers and losers is listed below:

• Identifying momentum stocks: Tracking top gainers helps investors establish an understanding of which stocks are gaining momentum in the stock market. This is based on the belief that the existing momentum will persist. 

• Understanding market trends: Market trends can be understood by examining patterns of top gainers and losers consistently over days or weeks. For example, if top gainers include many stocks from the same sector, it may indicate bullish market sentiment for that sector. 

• Risk management: By tracking the top losers, investors can gauge the bearish sentiment on these stocks. This helps plan their investment strategy, keeping the risks in mind. For example, if a stock is consistently among the top losers over days and weeks, with low prospects, it may be ideal to sell it off. 

• Identifying entry/exit points: Traders can plan their entry and exit into stocks using the top gainers and losers list. These help establish oversold and overbought zones that help in trading decisions. 

Where to track top gainers and losers?

The following platforms provide details of the top gainers and losers of the Indian stock market on a daily basis. 

• NSE: The official National Stock Exchange (NSE) platform provides reliable real-time data of the top gainers and losers that is updated throughout the day. 

• Stock market analytics apps: Various stock market analytics websites and apps provide detailed overview on the top gainers and losers throughout the trading day. 

• Financial Marketplaces: Digital marketplaces like Bajaj Markets provide an extensive list of top gainers and losers, with details of price and trading volume. 

How to use Top Gainers and Losers for Better Trading Decisions?

Traders can leverage smarter trading decisions using top gainers and losers with the following steps.

1. Track real-time updates: Using the above platforms, keep a track of the latest top gainers and losers throughout the trading day. 

2. Understand the movements: Before acting on a decision, understand why the stock is moving upwards or downwards. The stock movements could be due to government policy changes, industry-specific factors, rumours, and more.  

3. Assess technical indicators: Further analyse the movement of the stock with the help of technical analysis tools such as support and resistance levels. For example, if a top gainer stock has reached its resistance level, the trend may reverse any time soon. 

4. Blend with fundamental analysis: Use supportive fundamental analysis tools such as the stock’s financial performance, future prospects, management quality, etc.

5. Determine the trading approach: Decide whether riding the momentum, pulling back out of a trade, or avoiding is the best trading approach for the stock.

6. Define exit strategies: To optimally benefit from a trade, stop-loss orders should be in place. 

Conclusion

Regular tracking of the top gainers and losers list provides significant insights into the market’s changing dynamics. Traders can make smarter trading choices backed by extensive stock-specific research using these lists.